Hammond Power Solutions (OTC) ( (HMDPF) ) has released its Q1 earnings. Here is a breakdown of the information Hammond Power Solutions (OTC) presented to its investors.
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Hammond Power Solutions Inc. (HPS) is a prominent manufacturer of dry-type transformers, power quality products, and related magnetics, serving a global market with manufacturing facilities in Canada, the U.S., Mexico, and India. The company is listed on the Toronto Stock Exchange under the symbol HPS.A.
In the first quarter of 2025, Hammond Power Solutions reported a 5.6% increase in sales, reaching $201 million, despite challenges such as trade-tariff uncertainties. The company saw a significant increase in its backlog by 17.7% compared to the end of 2024, indicating strong demand in certain markets.
Key financial metrics for the quarter included an adjusted EBITDA of $30.9 million, representing 15.4% of sales, and net earnings of $26.2 million. The U.S. and Mexico markets showed a 7.8% increase in sales, while Canadian sales grew by 6.9%. However, sales in India declined by 23.9%. The company experienced a slight decrease in gross margin to 31.5% due to increased material and labor costs.
Looking ahead, Hammond Power Solutions anticipates a favorable shift towards more custom product shipments in the latter half of the year, supported by the early completion of a new factory. The company remains optimistic about its growth prospects, driven by strong demand in data center applications and other large projects.